tv [untitled] August 6, 2011 4:00pm-4:30pm EDT
in the movie goer argument joy people to see a movie that's the case we go to the grand imperial truly the george west coast coromandel you can a letter tell a joke it's a duty to go and. read this and the colonel was a total retreat. heading down the standard and poor's strips the u.s. of its highest credit rating period in the country's lenders with china already saying it's time to find a new reserve currency to replace the dollar. another round of mass protests start in israel as people rally against the government others compare the country's plight to that of revolutionary egypt. thirty one that u.s. special forces soldiers died after their helicopter was reportedly hit and of rocket attack in eastern afghanistan is the worst single loss of american troops in the conflict and comes amid talks of withdrawal.
international news and comment this is r.t. live in moscow just a midnight here in the russian capital good to have you with us this hour the united states prize top aaa credit rating has been cut for the first time since one thousand nine hundred seventeen standard and poor's has dropped america's ranking to double a plus this comes after a last minute debt deal earlier this week narrowly rescued the country from default and simply says the spending cuts agreed by congress are on one one and a half trillion dollars short and if it's not changed the rating could plan it further in the coming years but he of all of ministration says the analysis is way off and will damage any recovery. in washington for us well it really is more than anything a huge a symbolic and unprecedented blow to the united states to its status as a. as
a safe investment basically what this credit rating lowering does that it is it really raises questions about the validity of the united states and the ability of the u.s. politically to get its financial house in order so to speak the record questions here for the american people for the u.s. government could be severe now while this only takes it down from a aaa to double a plus with a negative outlook threatening in fact that the rating could get lowered even more in the next two years what it does is it potentially is sends the message that the united states is a risky investments that it sends interest rates going up for the federal government and because other borrowing costs are tied to that that means mortgage payments could go up mortgage interest rates can go up car interest rates can go up and really the rest of the u.s. economy could be severely affected now one thing that we do have to keep in mind here is that the obama administration had pointed out that the p. had made an error of about two trillion dollars in. projections in releasing that
information now the s. and p. doesn't make these decisions based on any sort of special information they really it really is a political reaction based on facts that are available to just anyone and so the other thing we have to keep in mind here is that these same credit ratings agencies essentially allowed top ratings to continue in the united states at a time when we were investing a lot of money in these mortgage securities that essentially ended up lapsing and pulling down the u.s. economy with it so they don't really have all that much credibility in the eyes of the world market still however we don't know what will happen come monday when the markets will open and if those interest rates do rise there could be a ripple at this very unstable economic time here in the united states with the passage of this debt deal the u.s. government's hands are essentially tied in terms of stimulating the economy in terms of any sort of new spending that could boost growth we saw g.d.p. growth would have stalled to almost a crawl in the second half of the year. we saw on top of that the jobs report that
came out on friday the united states while it was somewhat positive it actually showed negative growth because it means that more people here in america have given up looking for work so politically there's really not that will in washington to do what's needed to stimulate growth and financially they simply do not have the tools in their possession in order to improve things here and so while these credit rating agencies may sometimes be accused by some financial experts about having missed the mark long ago these small tiny effect in terms of higher interest rates could a really really cripple what's already seems to be a worsening recession here in the united states well to discuss more on this i'm now joined live from new york by max wolf he's a senior analyst to green crest capital thanks very much indeed for joining us live on your webcam now the bad news of course came on friday at the end of the week but well how do you think when monday comes in the markets open what can we expect the
first of all thanks for having me it's always my pleasure to join you work with you i do think that sunday night local time here in new york or monday morning for egypt when the markets open in new zealand australia and then quickly thereafter in northeast asia we're going to see some of the dislocation that we had all feared i mean as we kind of and in this disaster over the last month or two complicated which is actually mentioned in the press release complicated by the complete its function of the u.s. congress we're going to see another shock wave it into a global economy and global financial markets spent the last week for governments like this here so i think we're at a very sensitive here and while there's no good time to be downgraded the timing of this s. and p. downgrade of the u.s. from aaa double a plus could not be worse shockwave sent through the global economy say up could we actually be seeing the chance of another global recession. i don't think this is going to have the same kind of back that we know so deep within nationalization of fannie and freddie in two thousand and eight september of two
thousand and eight or the failure of lehman brothers across the fourteenth and fifteenth of september two thousand and eight but i do think is. it not just towards slippery slope it sets up an environment in which symbolically politically and economically the united states leadership the global economy has another kind of strike against it does reduce people's confidence i think quite ironically you might see people buying u.s. treasuries and selling other credits as a general right to quality people get scared and run away from riskier assets i mean running back to just those u.s. treasuries that were just downgraded i think bigger risk is to the word huge market with a very fragile situation in u.s. housing as well as car loans credit conditions generally and i would remind people to the s. and p. didn't just downgrade the united states they put us on further downgrade watch so they're suggesting that this downgrade may be big beginning of
a process and not the am actually the start of the discussion you mention the reaction there nice not china america's biggest lender clearly unhappy about this downgrade has already suggested that the world needs a new reserve currency i mean it seems unthinkable maybe not what think could happen if china does actually abandon the dollar. chinese are an awful lot of exposure to the dollar and they very much like dollars that allows them to keep the renminbi or the want their currency below where the market would set it so to some extent they have helped to aggravate this situation but it is true they're sitting on over a trillion dollars worth of u.s. treasuries and if those were to decline in value they would certainly end by data line i do think that the leadership of the united states therefore the dollar has come in for increasing question over the last few years we know the direction that this is heading him or last down the problem we have is that there is no other currency presently position to fill the shoes of the u.s. dollar i mean the euro normally mentioned as
a possible replacement isn't cheap it makes the dollar situation look pretty good right now so clearly that doesn't look likely you may see regional currencies emerge with euro's in rubles and brandon being again and even brazilian b i taking up some of the vision dollars currently have in their respective world regions and i think today's are yesterday's usually has to be downgraded announcement might also help to send all north of even seventeen eighteen hundred u.s. dollars an ounce and it may be in the process of increasing holding so we may see a basket of currencies with some gold become a little bit of a temporary substitute for the position occupied by the us dollar since the second world war just briefly and finally this is this crisis being prompted by speculation and perception raised by credit rating agencies now of course none of the poor track record has certainly been criticized in the past but now this two trillion dollar miscalculation is actually being pointed out in the s. and p. report by the white house officials of course the agencies defended the decision is
reasonable but the question is who's right who's wrong here just one in a. we don't have all the granularity of detail as to the alleged mistake it is quite possible that s.b.s. made a mistake and likewise i wouldn't rule out that u.s. treasury i was quite a lot at stake here and maybe also have blown up a disagreement into an actual factual error and the ratings agencies have been tarnished part because of their own misdeeds and lack of performance all over the world for many decades but the truth remains very imperfect problematic as they are they are the reading he sees and real decisions and real legal contracts are written based on these readings however questionable the source means the max is really good to hear what you have to say thanks so much for your time thanks for joining us live there maxwell senior analyst at green crest capital there in new york thanks oh my pleasure thank you for having me today. china as we've just been talking about is the largest holder of the u.s.
debt is immediately reacted to the news of the bank raid saying that washington needs to cure its debt addiction also as we just mentioned in that interview with max wolf the beijing has suggested a new stable reserve currency saying it's needed instead of the dollar will concerns also rising in asia largest economy india where the finance minister called the situation grave and reports now from new guinea. markets are tumbling they were tumbling on friday obviously we don't know what's going to happen on monday in specific reaction to this news but many analysts many financial analysts here predict that business especially after the u.s. debt ceiling debate that will go along and in many ways is what people are saying led to these. lower approval rating thank us you could say so the markets have tumbled here people are losing confidence in the american economy obviously there are things that soaring there is think a lot of decisions not specifically being made when it comes to that two point four
trillion dollars in cuts a lot of people are wondering if the top of the u.s. this along to come so it's just to raise the debt ceiling how much longer could it take to actually figure out with difficulty where to cut and asia has a very vested interest in this if you think about what these ratings actually means that means that the united states won't be able to repay a lot of their loans in asia actually hold three trillion dollars in the united states alone so people here are watching what's happening in the united states very closely. the downgrade came today to europe stock markets which have already taken a hammering this week being battered by the euro zone and america's debt difficulties we've all the e.u. leaders criticize the u.s. rating agencies blaming them of double standard saying they will create a european one in response to what he's done which will has more for us now from brussels. reuse downgraded trust in the rating agencies. as the agency admitted a two trillion dollar miscalculation when deciding this downgrade they claim to
have the world's best minds working for them really surprised people here because most know that's america's has had unsustainable that for many years now well everyone apart from the rating agencies it seems and the collapse in the credit crunch they still had aaa ratings on those companies now that maybe agencies lose their reputation but people lost their whole savings and triggered the world recession that followed. the rules are furious about s. and p's double standards they held with the white house before this decision they briefed them about it when it would take place what would happen and that's allowed the white house to prepare a response to the media and even question the agency's judgment none of that happened last week when the agencies graded the european union countries and their ratings now that suggests that the agencies are inconsistent to say the very least and as a result the european union is creating its own agencies this downgrade is bad for
americans who will see themselves having to pay more and more interest on their loans and having to pay more on that is bad really for everyone around the world who lend money to america because it raises the risk of not getting that money back . and a bushel level one small bet for a man one giant black hole for a government later on in the program we're in new york to ask what's the difference between our debt and those of our leaders. much worse for a government to be and why because we trust the government to do the right thing and they're doing absolutely opposite of that don't you trust yourself to do the right thing and live within your means i do mean dad so that i can pay off. a wave of mass anti-government protests is underway across israel the biggest rally is taking place until a bit of with up to a quarter of
a million attending one street there has already been named by some as is really tough here after the square in cairo where the egyptian revolution took place. is there for us. to me gary is electrifying what it did its job to do that and the fire they paid enough going anywhere until the israeli prime minister benjamin netanyahu meets their demands now practice organizers have been warning that some three hundred thousand people will take to the streets not only of tel aviv should also jerusalem and several other cities tonight and in the time it took me to pass through the security checks that caused hundreds of protesters holding up that is no united under the slogan office demonstration which is that he sold them on social justice and that's what they think right now we haven't followed and also that people will take back the man treat that judge and i told the nation and understood large groups of wives of policeman
a social workers our teachers our doctors all of them throughout the course of the day saying that they were mobilizing the communities and ordering them to come to the streets not tonight's protests also comes in the wake of controversial housing interest lation that was passed this week by the israeli parliament the israeli knesset according to protesters here it again allows for only be wealthy to buy housing putting affordable housing out of the reach of ordinary people so that is why you're hearing is waiting to be angry they say that netanyahu is not only not listening to their demands he is completely out of touch with what people here are thinking now even if it's only the comparison is being made between what he's seen here in israel and what has been happening in neighboring egypt this demonstration is sainted around a main street in tel aviv known as what's child boulevard and there are tens upon hundreds of tents on that street people have been sleeping there they've been eating they've been holding discussions and meetings they've been playing instruments essentially they've been living their lives on the street that some
people here have dug tapia square to hear corner of course being a reference to the heart of the egypt revolution so certainly that is a comparison we all still well seeing young people. you. people. people all true for me ukrainian prime minister yulia timoshenko continue to protest against her arrest her supporters have set up a tent camp in the center of the capital kiev she was arrested on friday for contempt of court and nazis and he has more now from the spot there. several dozen supporters of you are protesting here believing that the case is politicized and
being orchestrated directly by president of the college several hundred more people are stationed in a camp at the main main street and key of the prophetic street that's where the court building is we're hearing of course from clashes between supporters of religion which angle and the law enforcement officers is being accused of serious economic crimes including striking unlawful gas deals with russia and unlawful usage of money which ukraine received from signing the kyoto protocol several years back now it is interesting because there have been already comments from russia's foreign ministry which urged ukraine to hold a transparent and fair case on yulia timoshenko as well as saying that all gas deals which ukraine and russia signed in two thousand and nine were completely legitimate and were signed in full accordance with the two countries laws and also been very sharp comments coming from the european union with almost all of the
nations in europe criticizing the current state of affairs the fact that you are saying god has been placed under arrest and they demand that she must be released immediately and that the trial must be held in a transparent way they're actually going to be reporting there thirty one u.s. special forces personnel and seven afghan soldiers have been killed in a helicopter crash in the eastern province the taliban has claimed responsibility for the incident that marks the biggest single loss of life for american forces in the country were from or near some joint live from washington medea benjamin she's co-founder of the antiwar organization code pink thanks very much indeed for being with us here on our team now the taliban has claimed responsibility for this latest incident last month and also killed the brother of the afghan president so if there is still this deadly should the u.s. really be withdrawing its forces from the country in the near future. well i would see just the contrary that it's time to really think about all the forces because
what we have seen in these last ten years of endless war is that the presence of u.s. troops is it strengthens the taliban it gives the taliban a reason for being and the u.s. troops continue to be there the. violence will continue if there's a question of the afghan security forces on able to protect citizens from the taliban and indeed from from other. terrorist organizations very shortly do you think the afghans really want the u.s. forces to go. will the u.s. and the nato forces are not able to secure the afghans either report recently came out from the international crisis group that showed that despite billions of dollars in international aid and over one hundred thousand nato forces the afghan people are not able to be secure everybody knows that this crisis has to end through negotiations the sooner it happens the better and i think this crash is
really a time when we should say to ourselves in the united states how many more of our soldiers' lives are we willing to sacrifice for an unwinnable war hours ago i actually spoke to an afghan expert there in kabul he said that life in afghanistan has actually improved since the invasion so would you then agree that the ten year operation has now reached its goal and it's time for the troops to go. well you know we can declare victory and leave if that's usually nicer than clearing defeat and leaving but whatever the case we know that al qaeda is no longer in in afghanistan they have moved on to pakistan somalia yemen the u.s. has no reason to be fighting the taliban the taliban never attacked us in the united states and only attacks are soldiers because we are occupying their country so i think with the financial crisis in the united states and now this tragic death of thirty one who are of our soldiers it is time to really say if you want to see
victory and pull out or whatever but it's time to get out because one problem is that afghanistan is a source of illegal drug trafficking that is preventing the entire world and it is a major concern for russia how do you think this problem should and could be resolved. once again ten years of u.s. presence has not made that problem any. better in fact it's made it worse one of the few things the taliban did while it was in error was a radically a lot of the opium production so i think that. the present course of events whether it's four of the security of the united states or whether it's for the well being of the afghan people is just not working and you really do believe negotiation is a way for because many may say that the state of the country at the moment it just wouldn't be right for those troops to go because the country would descend in to further chaos but you do you really believe that negotiation is a way for them all the different factions will actually talk to each other. well i think it is the only way for it and i think the presence of u.s.
troops actually contributes to the instability in afghanistan not only from the. point of view of straining the taliban but i also think it adds to the corruption that just tremendous amounts of money flow into storage the economy and i think that in order to have the sound economic footing to improve the wellbeing of the afghan people we have to end the war and the only way to do it is through negotiations right it's very interesting here what you have to say thanks so much for joining us live co-founder of the antiwar an observation code pink joining us live there in washington thanks for your thoughts thank you. when next we travel thousands of kilometers east of moscow and also millions of years back in time. when the far east and originates a remote rich area holding russia's largest reserves of precious metals but artie's
alice who has met one tree whose treasure lies not in gold but bones this week to russia close the team is coming to you all week from the far east and more region after many this region's distinctive juice to its proximity to china and its loss reserves of warmer cereals and natural resources but one paleontologist and his team it's the bones of ancient dinosaurs discovered deep within the ground here this week firmly on the mark. you leave a lot of ski is a man obsessed with the cost of buying on age when dinosaurs rule is part of russia he may have been born in the countries that western areas but it's the far east on tap jurassic history in the region to which he's devoted his life for the rest of her very near there is just a side to be known since about nine hundred forty eight in the wake of an unbelievable number of bones are buried here and i think will be digging for at
least another two years which they literally everywhere here we are no region is looking up one of the few functioning archaeological sites we get is only here can a site boast of having produced a complete dinosaur skeleton that discovery made a decade ago led to the full recognition of a new breed of dinosaur a lot of the tongue or giants at twelve minutes a long harbor of all found almost exclusively here and it was really some of the first stops of a fragment of tail bone sticking out of the family and some one song to make alien technology history advanced since followed in his father's footsteps it's painstaking work requiring patience and skill in equal measure when we discover the long way we begin to remove the ground around it what were you with a knife your your hand and a shower where a girl forward is low because zero can be more bones in the ground around it.
just a lives. year ian fifteen has been excavating this site for the past three years and already they found well over a thousand dinosaur bones approximately sixty five million years old but they believe that the bones of hundreds of more dinosaurs i gets to be found within this small plot alone i'm told that these will most likely be fragments of another giant duckbilled planty unique to the region and named in its own he and more source is another previously undiscovered breed credited to team a lot ski which includes an italian also as scientists say it was she who came up with both steiner saul's names as well as taking day to day charge of running the region's only paved logy the burra tree i muse e.-m. each new discovery missed the camp a long time examines the aim is to inspire the next generation of dinosaurs. musume out on ensuring the family's feats don't do one no manage the wrecking ball
with one up here you can see a photo of yuri blots here a ration site and here you see photos of i'm going to source this is a skeleton and worse or it's quite a strange look a reptile isn't it and so learn from the follies of history so as miles and this is charles marsh an american poland zoologist in one thousand nine hundred seventy he visited moscow and announced that there were no dinosaurs in russia and everyone believed him yet luckily comes from a long line of scientists you chose to follow their own instincts and secured a more space in the history books as one of the world's foremost sites for paleontology it was their determination of a new small amount of teaching that revealed a dinosaur jumps alice a bit arty regions. well back to the us and the drama that seen its top credit rating taken off if you or i get into that and of course the bank is on our backs
without delay yet it's only now that america which shows trillions is seeing its credit score decline online talk show host people in new york why americans are so keen on boring. why do you think so many people allowed themselves to get so far and that is the is the age that we live in everybody sees the person next door that they've got a brand new car the lifestyle and that's what they want is so much advertising and people just want you to spend money so i think that's the difference between americans and europeans but you have advertising in europe are you just you don't pay attention to it or. i think we pay less attention to it and we probably think a little more about what we need and what we can't afford so it's all about banking yes i think so is it worse for you to be into personally than it is for
a government to be in such. it's much worse for a government to be and why because we trust the government to do the right thing and they're doing absolutely opposite of that but don't you trust yourself to do the right thing and live within your means i do mean that such that i can pay it off i get is dead it's bad for governs best for individuals and the government should show leadership show they've got to clean it up do we really expect our government to get its act together if we can't get our act together for small family we can only hope individuals and the government will step up and make a difference whether or not you're in debt personally the bottom line is we've become a planet of debtors so it might be time for all of us to rethink what it is to live within our means. and i'll be back with a recap of our top stories for in just